The corona crisis also hits the major US banks hard. The result is a slump in profits – and fuel worries about future loan defaults. But they only slow the market down briefly.
The US stock exchanges closed after a roller coaster ride on Tuesday with spreads. Bank balance sheets drove investors on Wall Street. In a nervous trade, the indices fluctuated between plus and minus. In late business, however, the stock marketers got back into high-tech stocks.
The US standard value index Dow Jones closed 2.1 percent higher at 26,642 points. Of the Nasdaq composite advanced 0.9 percent to 10,488 points. The broad one S&P 500 gained 1.3 percent to 3,197 points. Of the Dax however, recorded losses.
Large US banks suffer from corona crisis
In the case of the individual values, traders analyzed the results of the US banks, which posted a sharp drop in profits due to the corona crisis. At JP Morgan it was not as strong as expected. Trade sales in particular surprised us positively. "You make money in a difficult environment, and that shows what good management and a strong balance sheet can do," said equity strategist Christopher Grisanti from MAI Capital Management. JP Morgan shares closed trading with a moderate price gain of 0.6 percent.
CitigroupOn the other hand, stocks lost almost four percent, as the institute had to set aside billions for possible write-downs on loan defaults. Wells Fargo investors disliked the prospect of a lower dividend. The shares of the US financial institution lost 4.6 percent. Goldman Sachs plans to present its figures on Wednesday, followed by Bank of America and Morgan Stanley on Thursday.
As the first of the major US airlines put down Delta Air Lines as a result of the corona crisis. Adjusted pre-tax loss of $ 3.9 billion in the second quarter resulted in $ 11 billion less in sales than a year earlier. The shares fell by 2.6 percent.
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